Johnson County to Receive $230K in Settlement Funds

Johnson County will be receiving just over $230,000 in a settlement with Vanguard Energy, now known as Grizzly Energy, LLC for ad valorem taxes owed to the county from tax years 2016-2020.

At Tuesday’s county commission meeting, County Attorney Tucker Ruby said taking the settlement, which is roughly one-third of what the county is owed by the company, will avoid having to pursue a lawsuit in the state of Texas which would cost the county upwards of $150,000 above what they have paid in legal fees so far to recover the delinquent taxes.

The total settlement offer is for $2.3 million, which would be split by the six counties involved in the lawsuit, based on the percentage of what each is owed.

Johnson County accepting the settlement has no bearing on the other counties’ decision to accept the settlement and vice-versa.

Ruby also said even if the county won the lawsuit in Texas, they would have an “entitlement to payment,” which guarantees no specific time for payment, and will likely mean an appeal by the company, further extending any payment to the county.

By accepting the settlement, the county will receive their settlement check within 14 days of signing the agreement.